System and method for conducting a financial transaction between a sender and recipient of a mail piece

ABSTRACT

In a postage payment system, a secure integrated circuit (IC) card is used to manage postage funds, and created encrypted postage indicia. Among other things, the system is capable of performing charge-back accounting of postage expenses and generating mail contents. In accordance with an aspect of the invention, the postage indicia are applied onto selected locations of the mail contents while they are being generated. In the preferred embodiment, each mail content is placed in a window envelope such that the postage indicium on the mail content exposes through a window of the envelope to facilitate inspection of the indicium. In accordance with another aspect of the invention, by including transactional data in addition to the traditional postal data in a postage indicium, the indicium can be used to pay bills, purchase products and services, including any courier service different than the postal service.

This is a continuation of application Ser. No. 08/973,293, filed Dec. 1,1997, now allowed, which was the National Stage of InternationalApplication No. PCT/US97/06831, filed Apr. 23, 1997, which claims thebenefit of U.S. Provisional Application No. 60/016,082, filed on Apr.23, 1996, U.S. Provisional Application No. 60/017,911, filed on Apr. 23,1996, U.S. Provisional Application No. 60/015,528, filed on Apr. 23,1996, and U.S. Provisional Application No. 60/016,760, filed on May 3,1996.

TECHNICAL FIELD

The invention relates to postage payment systems and methods, andparticularly to systems and methods for managing and securely dispensingpostage payments.

BACKGROUND OF THE INVENTION

In this information age, use of computers to process, transfer, andstore data is ubiquitous. To prevent tampering or unauthorized use ofthe data which contains vital information, cryptographic technology hasbeen developed.

Well-known cryptographic methods for maintaining secrecy of datacommunications include a data encryption standard (DES) method. Fordetails on the DES method, one may refer to: M. Smid et al., “The DataEncryption Standard: Past and Future,” Proceedings of the IEEE, Vol. 76,No. 5, May 1988. This method requires a DES algorithm, and a secret keyknown only to the sender and recipient of the data. The DES algorithminvolves a number of iterations of a simple transformation of the datausing the key. In each transformation, transposition and substitutiontechniques are alternately applied to the data.

Also well-known is the RSA cryptographic method, named after itsdevelopers, Rivest, Shamir and Adleman. For details on the RSA method,one may refer to: R. Rivest et al., “A Method for Obtaining DigitalSignatures and Public Key Cryptosystems,” Communications of the ACM,Vol. 21, No. 2, Feb. 1978. The RSA method involves a public keyalgorithm which uses a private key and a public key for data encryption.Unlike a private key, a public key can be published and made known tothe public. The keys for the RSA algorithm are generated mathematically,and are computational inverses to each other. The success of the RSAmethod depends on the use of very large numbers for the keys.

In addition to providing encryption of a data message, somecryptographic methods can also be used to authenticate the message. Forexample, public key encryption algorithms such as the aforementioned RSAalgorithm can be used to produce a “digital signature” for verifying theorigin of the message and the identity of the sender. Another algorithmknown as the “Digital Signature Algorithm (DSA)” can be used for thatpurpose as well. A digital signature is distinct for each datatransaction. When a message is encrypted at the sender's end, the senderuses his/her private key to digitally sign the message. When the messageis decrypted at the recipient's end, the recipient uses the sender'spublic key to verify the digital signature. If any alteration in eithersignature or message occurs, the signature does not verify.

Another well-known method for verifying the authenticity of a datamessage is based on the idea of arbitrated authentication. In accordancewith this method, a third-party certification authority (sometimescalled a “digital notary”) certifies an individual's or entity's publickey so that the authority authenticating the digital signature isassured that the public key used to verify the message contents is trulyassociated with the sender.

Because of the ubiquitous presence of computers (in particular, personalcomputers (PCs)), prior art has suggested use of a general purposecomputer, in lieu of a specialized postage meter, to print postageindicia serving as a proof of postage on mail pieces. To deter printingof unauthorized postage, the postage indicium applied on a mail pieceincludes postal data which is digitally signed, and thereby can beauthenticated by a postal authority when the mail piece is processed. Tofacilitate the mail processing, the indicium is generated in the form ofa bar-code readable by a scanner.

SUMMARY OF THE INVENTION

In accordance with the invention, a postage payment system incorporatinga general purpose computer is capable of securely dispensing postage,and efficiently generating mail pieces. In particular, with theinventive postage payment system, postage indicia are advantageouslygenerated at the same time as mail contents such as letters, invoices,and statements. In accordance with an aspect of the invention, a postageindicium is applied onto a selected location of the mail content. In thepreferred embodiment, the mail content is placed into a window envelopesuch that the postage indicium on the mail content exposes through awindow of the envelope to facilitate inspection of the indicium.

In addition, the inventive system is capable of conducting encryptedcommunications, and loading and dispensing of postage funds stored in asecure integrated circuit (IC) card. Moreover, the inventive systemprovides charge-back accounting capabilities to account for postageexpenses by individuals or departments. Further, the inventive system iscapable of extracting from the mail contents certain postal data such aszip code data for inclusion in a postage indicium.

Still further, we have revolutionized the concept of a postage indiciumwhich is traditionally used as a proof of postage for mailing servicesrendered by a postal authority, such as the United States Postal Service(USPS). We have recognized that a postage indicium is documentation of atransaction by the originator of the indicium. Thus, in accordance withanother aspect of the invention, by incorporating, in addition to thetraditional postal data, transactional data including a transactionamount and payment instructions in a postage indicium, the indiciumbecomes a money order payable to a specified payee. In that instance,when the postal authority inspects the indicium, recognizing that atleast part of the indicium represents a money order, the postalauthority acts as a payer bank and pays the transaction amount to thespecified payee according to the payment instructions. As such, thepostage indicium can be used not only as a proof of postage for the mailpiece being delivered by the postal authority, but also as a money orderto pay bills or repay debts to any party which may or may not be therecipient of the mail piece.

In particular, by specifying the payee of the money order represented bythe indicium to be a courier (e.g., FedEx) different from the postalauthority, and the transaction amount to be the cost of the courierservice, we have invented a universal postage indicium for paying anycourier service.

BRIEF DESCRIPTION OF THE DRAWING

Further objects, features and advantages of the invention will becomeapparent from the following detailed description taken in conjunctionwith the accompanying figures showing a preferred embodiment of theinvention, in which:

FIG. 1 illustrates a postage payment system in accordance with theinvention;

FIG. 2 is a block diagram of an integrated circuit (IC) card used in thesystem of FIG. 1 to dispense postage;

FIG. 3A illustrates a document generated by the system of FIG. 1 inaccordance with the invention;

FIG. 3B illustrates a window envelope in accordance with the inventionfor enclosing the document of FIG. 3A;

FIG. 4 is a flow chart depicting the steps of a mailing applicationprogram used in the system of FIG. 1;

FIGS. 5, 5A and 5B are flow charts depicting the steps of a routine runby a mail processor in the system of FIG. 1;

FIG. 6 illustrates a postage indicium generated by the system of FIG. 1;

FIG. 7 illustrate a second postage indicium in accordance with theinvention; and

FIG. 8 is a table enumerating different data fields in a bar-codeportion of the indicium of FIG. 7.

Throughout the figures of the drawing, the same reference numerals andcharacters are used to denote like features, elements, components orportions of the illustrated system.

DETAILED DESCRIPTION

FIG. 1 illustrates postage payment system 100 embodying the principlesof the invention. As shown in FIG. 1, system 100 comprises computer 103(e.g., a standard PC or workstation), mail processor 150, integratedcircuit (IC) card 180, and printer 190 (e.g., a standard inkjet or laserprinter). In particular, installed on computer 103 is a mailingapplication program in accordance with the invention. Also installed onthe computer is conventional word processor, billing, accounting and/orother software which, among other things, enables a user to generatemail contents in text and graphics. Computer 103 is connected to mailprocessor 150.

Central to mail processor 150 is microprocessor 155 which, among otherthings, communicates and processes data to and from various interfaces.These interfaces include communications interface 161 for connectionwith computer 103 as mentioned before, serial interfaces 163 and 165 forconnection with devices such as a conventional optical scanner (e.g., abar-code scanner) and postage scale, PCMCIA or serial (PCMCIA/serial)interface 167 for interfacing with IC card 180, and printer parallelinterface 169 for connection with printer 190.

Processor 150 includes rate storage 156 for storing rate schedule datarelating to different courier services. Because of the volume of thedata involved, storage 156 in this instance is dedicated, and anon-volatile memory which may be an electrically erasable programmableread-only memory (EEPROM), a flash EEPROM, or a battery-backedrandom-access memory (RAM). The rate schedule data may be stored in amanner typified by tables or other formats to facilitate the search bymicroprocessor 155 for correct postage rates for the mail piece beingprocessed. Other related information for use in optimum methods toobtain postage may also be stored in storage 156. As is well known, thecost of delivery of a mail piece to a destination depends upon not onlythe weight of the mail piece, but also the particular courier serviceused, the destination zone, the class of shipment, and the selectedservice options. For example, in the United States, courier servicessuch as USPS, United Parcel Service (UPS) and FedEx each haveindependent, different postage rates, and charges for different serviceoptions. For instance, USPS has various rates for first, second andthird mailing classes, standard (A) classes, express mail service,priority mail service, parcel post service, book rate service, etc. UPSlevies extra charges for service options such as the collect on delivery(COD), delivery confirmation response (DCR) and declared value (DV)options.

Mail processor 150 also includes memory 158 for storing a controlprogram, which contains various routines for microprocessor 155 toperform in carrying out different functions to be described.

Referring to FIG. 2, IC card 180 has PCMCIA/serial interface 201 forinterfacing with and insertion into mail processor 150, and includescryptographic processor 205, and secure memory 207. The components in ICcard 180 may be realized using a chip set of the type of the NETARMORVMS310 chip set manufactured by VLSI Technology, Inc, or alternativelythe chip set typified by smart card technology.

Secure memory 207 which is a nonvolatile memory comprises a descendingregister and an ascending register. In a conventional manner, thedescending register is used to keep track of an amount of postageavailable for dispensation. On the other hand, the ascending register isused to keep track of an amount of postage dispensed. It may bedesirable to store the accounting data in the registers redundantly, asset forth in PCT Pub. No. WO 89-11134. In addition, it is extremelydesirable to protect the memory from harm due to processor malfunction,as set forth in U.S. Pat. No. 5,276,884, in EP Pub. No. 527010, or in EPPub. No. 737944.

When the value of the descending register decreases over time below apredetermined limit, system 100 can no longer dispense postage until thedescending register is reset. Such a reset can be accomplished usingwell-known telemeter setting (TMS) techniques. For example, some ofthese techniques are disclosed in EPO Pub. No. EP 442671, PCT Pub. No.WO 86-05611, U.S. Pat. Nos. 5,237,506, and 4,097,923.

Using a TMS technique in this instance, the user need not carry card 180to a postal authority for authorized resetting of the register. Toinitiate a TMS process in system 100, the user is required to enter akey or password on mail processor 150 using its keypad (not shown).Verification of the password entry ensures that the user is authorizedto conduct such a process. After the password entry is verified,processor 150 initiates a call through a modem (not shown) incorporatedin computer 103 to a computerized central facility, requestingadditional available postage. Upon receipt of the call, the centralfacility verifies specified encrypted data stored in secure memory 207of card 180, and ascertains the availability of funds in the user'sprefunded escrow account. After the encrypted data is validated and thefunds are found to be sufficient, the central facility debits the user'saccount and remotely resets the descending register in card 180accordingly. A message is then communicated to mail processor 150,confirming the funds transfer.

It will be appreciated that the postage funds on card 180 may also berecharged at an automatic teller machine (ATM) or a similar machineusing an ATM card, a credit card, debit card, charge card, telephonecalling card, telephone prepaid card or prepaid transit fare card, or ata vending machine using cash; or recharged using other funds transfertechniques including electronic funds transfer (EFT) through a privatenetwork, the ATM network, the EFT network, the Internet, etc.

Secure memory 207 also includes an encryption algorithm, e.g., an RSAalgorithm, a digital signature algorithm (DSA) or similar algorithm, andthe public and private keys associated therewith. For instance, usingthe DSA, cryptographic processor 205 may encrypt specified postal datawith the public key, together with any transactional data in accordancewith the invention (described below), and/or sign the data with theprivate key to produce a digital signature to be included in a postageindicium for its authentication. In addition, the stored public key maybe provided in the indicium for the postal authority to verify thedigital signature.

It will be appreciated that in secure memory 207, which may be multiplediscrete memory devices, critical information may be stored in aredundant and historical manner for the purpose of analysis leading toreconstruction of events regarding funds administration.

As mentioned before, the user may utilize the word processor, billingand/or accounting software on computer 103 to generate mail contentssuch as letters, invoices and statements. Traditionally, the mailcontent after it is generated is placed into an envelope, and a proof ofpostage is then applied onto the envelope. The resulting mail piece isready to be sent. We have recognized that such a practice is inefficientin that the generation and application of the proof of the postage is aseparate step from the generation of the mail content. In accordancewith the invention, with the aforementioned mailing application program,the step of generation and application of a postage indicium is madepart of the mail content generation step. Specifically, the mail contentis printed at the same time as the postage indicium. In the preferredembodiment, the indicium is printed at a selected location of the mailcontent such that after it is placed in a window envelope, the indiciumis exposed through a window of the envelope for inspections.

FIG. 3A illustrates mail content 300 generated by system 100 inaccordance with the invention. As shown in FIG. 3A, postage indicium 305is printed in the upper right corner of the mail content. FIG. 3Billustrates corresponding window envelope 340 for enclosing mail content300. As shown in FIG. 3B, envelope 340 includes window 347 in its upperright corner where a proof of postage is traditionally placed. Window347 may be uncovered, or covered by glassine or similar transparent ortranslucent material. In accordance with the invention, window 347coincides with postage indicium 305 when mail content 300 is folded andplaced into envelope 340.

It will be appreciated that where it is allowed, postage indicium 305will be printed close to or become part of an address block so that atraditional window envelope can be used, whose window coincides with theaddress block. In addition, non-window envelopes can also be used in theevent that the postage indicium can be scanned through the envelopesusing an infrared, a magnetic, or similar scanner.

The aforementioned mailing application program installed on computer 103will now be described. By way of example, the program in question isinvoked by the user after the text of a document has been entered usingthe word processor capability on computer 103 and the user has decidedto send the document. FIG. 4 is a flow chart depicting the steps of themailing application program. Instructed by such a program, computer 103elicits from the user the identity of the document to be sent, asindicated at step 401. After the user identifies the document by itsname and path on computer 103, the latter at step 405 queries the userfor the method of shipment. Accordingly, computer 103 at step 410displays a list of shipment methods for the user to select. Theselection may be accomplished by pointing and clicking at the desiredmethod using an indicator device such as a mouse (not shown) connectedto computer 103.

As soon as the user selects one of the shipment methods, say, USPS firstclass mail, computer 103 at step 415 queries the user for any optionalservices to be used for the shipment. Accordingly, computer 103 at step420 displays a list of optional services applicable to the selectedshipment method. After the user selects one of the optional services,say, certified mail, computer 103 queries the user for the stock weightor type of the paper to be used for printing the document, as indicatedat step 425. Upon receiving the stock weight or type entry, say, 24 lbs.(or bond “x”), computer 103 at step 430 queries the user for the stockweight or type and size of the envelope to be used. In this instance,the user indicates that a 24 lb. (or tyvek “x”) #10 envelope is to beused. Computer 103 then queries at step 432 whether there are anyenclosures and the weight thereof. In this instance, the user indicatesthat there is no enclosure.

Utilizing, in part, the word processor capability, computer 103 at step435 retrieves the identified document on the screen, and prompts theuser to indicate the desired location on the document where the postageindicium is to be printed. Alternatively, predefined setups fordifferent formats may be utilized. In this instance, the user indicatesthe location being the upper right corner of page 1 of the document.Computer 103 thereafter provides at step 440 a draft option whichenables the user to preview the document including a specimen indiciumappearing at the user defined location before the document is printed.Thus, this option allows the user to check the format of the documentand the relative placement of the address block, postage indicium andsuch on the document before the user is committed thereto.

After the user decides to proceed with the printing of the document,computer 103 at step 445 generates an ensemble of control charactersrepresentative of the above user responses. At step 450, computer 103transmits the data stream representative of the text of the document tomail processor 150, along with a control sequence comprising theensemble of control characters preceded by a header. This headercomprises a special character pattern and contains information on thelength of the ensemble.

The data stream is formatted pursuant to the protocol required byprinter 190. For example, if printer 190 is a printer manufactured byHewlett-Packard Co., the data stream would be in accordance with theHewlett-Packard printer control language (HP-PCL).

After the data stream and the control sequence are received by mailprocessor 150, the latter searches the input for the aforementionedspecial character pattern in the header. In an absence of such apattern, processor 150 determines that the input consists of only plainprint data (i.e., plain text). If that is the case, the input would bepassed onto printer 190 through interface 169 without modification.However, in this instance, the special character pattern has beendetected by mail processor 150. Such a detection invokes a postagepayment routine stored in memory 158.

FIG. 5 illustrates a flow chart depicting the steps of the postagepayment routine. Instructed by this routine, microprocessor 155 searchesthe data stream and control sequence to obtain pertinent information tocompute the required postage and to place the postage indicium at theuser defined location. From the data stream, microprocessor 155 locatesthe destination address and learns its zip code, and derives the numberof pages in the document, as indicated at step 501. From the controlsequence, microprocessor 155 learns the above information provided bythe user including the method of shipment, selected optional services,stock weight/type of the paper, stock weight/type and size of theenvelope, the location of the postage indicium, etc., as indicated atstep 505. Microprocessor 155 then computes at step 510 the weight of thewould-be mail piece using the knowledge of the number of pages of thedocument, stock weight of the paper, and stock weight and size of theenvelope. Based on the computed weight, and the knowledge of thedestination zip code, method of shipment and selected optional services,microprocessor 155 at step 515 obtains from the rate schedule in storage156 the relevant shipping rates. Microprocessor 155 then calculates atstep 520 the required postage. At step 525, microprocessor 155 sends therequired postage and postal information including the zip codeinformation to IC card 180 through PCMCIA/serial interface 167.Alternatively, the user may manually enter the weight and rates.

Upon receiving such information, processor 205 in card 180 deducts therequired postage value from the available postage funds in theaforementioned descending register, and accordingly adds same to thedispensed funds in the ascending register to account for thetransaction. Processor 205 then provides to mail processor 150, adigital signature and other necessary information such as the ascendingand descending register values, for creating a postage indicium inprocessor 150. Alternatively, processor 205 itself may create thepostage indicium and pass it onto mail processor 150. In any event, inthis instance the postage indicium includes human readable informationand a 2-dimensional bar-code pursuant to, say, the well-known UniformSymbology Specification PDF 417. It should be noted that aone-dimensional bar-code may be used in lieu of a 2-dimensional bar-codeif the former should have sufficient data capacity.

FIG. 6 illustrates one such postage indicium created in mail processor150, where human readable portion 605 in this instance includesinformation concerning the postage, mailing date, etc., and bar-codeportion 610 is representative of the postal data required by the postalauthority, and the digital signature for authenticating the indicium asmentioned before.

However, it should be pointed out at this juncture that by furtherincluding transactional data in human readable portion 605 and bar-codeportion 610 in accordance with the invention, the indicium of FIG. 6 mayalso be used as a secure money order payable to a specified payee. Inparticular, as described hereinbelow, if the payee is specified to be acourier service such as the FedEx service, the postage indicium wouldrepresent a service payment to the courier service. As such, the presentpostage payment routine and the above-described mailing applicationprogram are applicable not only to the postal service but other courierservices.

Referring back to FIG. 5, after microprocessor 155 receives from card180 the aforementioned information, it creates the postage indicium ofFIG. 6 using the received information, as indicated at step 530,microprocessor 155 at step 535 generates control instructions compatiblewith the language of printer 190 for printing the indicium in the userdefined position (in this instance, the upper right corner of page 1 ofthe document). At step 540, microprocessor 155 inserts the controlinstructions into the data stream representative of the text of thedocument. The revised data stream is then transmitted to printer 190through interface 169, as indicated at step 545. Accordingly, printer190 generates the document including the proper postage indicium in theupper right corner of page 1 thereof. As a result, when the document isfolded and inserted in a window envelope such as envelope 340 in FIG.3B, the indicium is exposed and can readily be inspected.

It should be noted at this point that it is advantageous to have thepostage indicium printed on the mail content particularly when automatedinserting equipment is used to enclose inserts with the mail content. Asthe automated inserting equipment processes encoded data on the mailcontent indicative of certain inserts (e.g., a pamphlet) to be added tothe mail piece, by correlating the postage amount in the indicium withthe weight of the inserts, the equipment ensures that the correctinserts are added.

In a company environment, mail processor 150 is most likely connected toa number of computers similar to computer 103 in a network arrangementto generate mail contents. In addition, in such an environment, anaccounting of the postage expenses may be necessary to charge backindividuals or departments responsible therefor. To that end, thepostage payment routine of FIG. 5 performed in mail processor 150 canreadily be modified. Specifically, after step 501, referring to FIG. 5Amicroprocessor 155 can also search 502 the data stream representing thetext of the document for the author's identity and/or authorization,which may be his/her name in the signature block, telephone number,preselected password and/or code appearing in the text. With theidentity and/or authorization information, microprocessor 155 canattribute 503 the corresponding postage expense to the authorhimself/herself or to his/her department while the mail content is beinggenerated. This is advantageous because otherwise, if the charge-backaccounting is performed after the preparation of the mail content, forinstance, when the postage indicium is applied on an envelope, specialequipment such as a scanner for scanning the indicium may be requiredfor that purpose.

In addition, by using the above charge-back accounting technique,microprocessor 155 can also attribute the postage expense to auser/department before the postage indicium is applied. This isadvantageous in that if the user/department is identified to beunauthorized to expend postage funds in system 100, e.g., not on anauthorized list kept in processor 150, the generation of the mailcontent, together with the postage indicium, would be suspended toprevent fraudulent or unauthorized use. An unauthorized use may stemfrom a depletion of postage funds previously allocated to theuser/department account.

In any event, an exception report identifying the unauthorizeduser/department may be generated by processor 150 through printer 190.If after an investigation, the individual/department is determined to beallowed to expend postage funds in system 100, the suspended job may bereactivated and the individual/department as identified by processor 150is then added to the authorized list.

Processor 150 can also maintain a database to automatically collectinformation about mail contents processed thereby including thecorresponding postage information. Such a database is useful in manyways. For example, it can be used to furnish secure audit trails for along-term security check against fraudulent attempts to compromise theintegrity of the postage dispensing function of system 100. Inparticular, the secure audit trails provide a parametric feedback ofmultiple users/accounts commingled and used randomly in real time.

In addition, with the above database, various statistical analyses canbe performed, and statistics such as the median postage expense per mailpiece, the most popular shipment method used, etc. can be generated.Based on such statistics, a company can cut costs, for example, byencouraging the employees to use a less expensive, albeit less popular,courier service whenever it is possible.

The above database can also be used for tracking the mail piecesgenerated by system 100, each of which may be uniquely identified by,for example, its source, destination, time of generation, etc.

The above charge-back accounting and database are realized based on themail pieces generated within system 100. For mail pieces generatedoutside system 100, the accounting and database in question can besimilarly realized by using a conventional scanner connected to mailprocessor 150. In particular, if the user's name, account number,destination zip code, special routing data, etc. are encoded in abar-code on the face of the mail pieces, a bar-code scanner can be usedto extract the information therefrom. Otherwise, an optical characterrecognition (OCR) scanner or a similar device is used to scan the textappearing on the envelopes, postcards, etc. With the extractedinformation, accounts for charge-backs may be automatically created,updated and maintained.

The required postage for the above mail pieces processed by processor150 may be determined by a conventional electronic postage scaleconnected to processor 150. Again, before processor 150 generates apostage indicium on a label to be applied onto a mail piece, thevalidity of the user account can be checked to prevent fraudulent orunauthorized use. Of course, if such illegitimate use is notanticipated, the scanning of the mail pieces may be performed after thegeneration of the postage indicium or confirmation of the postagedispensation.

In addition to using a postage indicium as a proof of postage, using theindicium to pay bills, repay debts, and purchase products and servicesin accordance with the invention will now be described. Each householdeach month needs to pay numerous bills including utility bills, creditcard bills, insurance payments, etc. The most common method of paymentof the bills is writing paper checks for the appropriate amounts andmailing such checks to payees. However, when the mailing occurs close tothe deadline for the payment, which is common, the check is oftentimesstill in transit on the due date. Accordingly, a notice is sent by thepayee indicating an overdue balance, which usually has been paid by thetime the notice reaches the payer as the payee has already received thecheck before then. This practice proves to be annoying to the payer anda waste of resources to the payee in sending out unnecessary notices.This being so, there exists a need for an efficient method for remittingpayments.

In solving such a need, we have revolutionized the concept of a postageindicium which is traditionally used as a proof of postage. We haverecognized that a postage indicium is documentation of a transaction bythe originator of the indicium. In accordance with the invention, byincorporating, in addition to the postal data, transactional dataincluding a transaction amount and payment instructions in a postageindicium, the indicium becomes a financial instrument similar to a moneyorder payable to a specified payee.

FIG. 7 illustrates postage indicium 700 in accordance with theinvention. As shown in FIG. 7, indicium 700 includes human readableportion 705 and bar-code portion 710. Unlike portion 605 of FIG. 6,portion 705 includes human readable transactional data 708 indicating apayment (e.g., $10.00) to a specified payee (e.g., XYZ Co.). Asdescribed hereinbelow, like postage 709 (e.g., $0.32), the paymentamount (i.e., $10.00) was deducted from the available funds in thedescending register in card 180 when indicium 700 was created. Thus, theoriginator of indicium 700 in this instance expended $10.00 additionalpostage (i.e., in addition to the $0.32 postage for the cost of deliveryof the mail piece on which indicium 700 is applied) in favor of thepostal authority. This additional expended amount is to be paid by thepostal authority to the payee in a manner to be described.

Moreover, unlike bar-code portion 610 representing the required postaldata and digital signature, portion 710 additionally includestransactional data. However, like portion 610, the data in portion 710is readable by the postal authority when it uses a conventional bar-codescanner to process the indicium. In accordance with the invention, afterlearning the transactional data in portion 710, the postal authoritypays the specified amount to the payee.

FIG. 8 illustrates different data fields in bar-code portion 710. Inparticular, fields 801 a through 801 g contain the transactional data inaccordance with the invention. Specifically, field 801 a contains dataidentifying the payer and particularly data identifying the payeraccount with the payee for proper credit of the payment. For example,the payee, XYZ Co., in this instance is a credit card company. The payeris a credit card holder who originated indicium 700 to pay his/hercredit card balance (e.g., $10.00) in accordance with the invention.Thus, in this example, the data in field 801 a is most likely thepayer's credit card account number.

Field 801 b contains data identifying the payee, and the payee's bankaccount if a transfer of funds (in this instance in the amount of thecredit card balance) by the postal authority to the payee is anticipatedto realize the bill payment. In this instance, the data in field 801 brepresents the name of the payee and an EFT routing number identifyingthe payee's bank account.

Field 801 c contains data representing a transaction amount, which inthis instance is $10.00.

Field 801 d contains a data bit. A first value (e.g., a binary “1”) ofthis data bit indicates to the postal authority that the payment isrealized by funds transfer to the payee. A second value (e.g., a binary“0”) indicates to the postal authority that the payment is realized bypaying cash to the payee. In this instance, the data bit is set to thefirst value.

Field 801 e contains data representing a personal identification number(PIN) which is used for security reasons described hereinbelow.

Field 801 f contains data identifying the present transaction, which maybe a transaction sequence number. With this data, the payer cancommunicate with the postal authority to, for any reason, cancel thetransaction before the transaction is consummated, and have thetransaction amount (probably less some processing fee) returned by thepostal authority to the payer in cash or deposited into the payer'saccount with the postal authority. The postal authority then registersat a central computer that the subject transaction or postage indiciumhas been cancelled.

Field 801 g contains data representing special instructions to thepostal authority concerning the transaction. For example, theinstructions may specify a payment date which may be the actual paymentdue date, or an expiration date after which the present transaction isno longer valid. In addition, by the special instructions, the payer mayrequest the postal authority to send to the payer a confirmation ofpayment to the payee. Further, the postal authority may apply a digitalsignature onto the confirmation, authenticating the date of payment orcertifying the funds transfer to the payee. The digital signature thusbecomes a secure post mark.

Field 801 h contains postal data similar to that in portion 610, whichis required by the postal authority.

Field 801 i contains a digital signature resulting from signing the datain fields 801 a through 801 h using the same encryption key as that usedto sign the postal data in portion 610. If any alteration in eitherdigital signature or any data in fields 801 a through 801 h occurs, thedigital signature does not verify.

When indicium 700 appearing on a mail piece is processed by the postalauthority's payment handling equipment in accordance with the invention,the latter verifies the digital signature and registers thetransactional data in bar-code portion 710. If the signature is valid,the equipment checks with a central computer whether indicium 700 hasbeen cancelled. If it has not been cancelled, the equipment initiates anelectronic transfer of the specified funds to the payee's bank account,along with the data identifying the payer and/or payer account with thepayee for proper credit thereto. The equipment then communicates to thecentral computer that indicium 700 has been paid, thereby cancelling theindicium. That is, representation of indicium 700 or the informationcontent thereof to any payment handling equipment thereafter iscountered with a payment denial.

If the aforementioned payment handling equipment is located atdesignated postal authority mail processing locations. The mail piece onwhich indicium 700 is applied is addressed to the closest designatedlocation. It should be noted that since the mail piece on which indicium700 is applied does not need to reach the payee to realize the billpayment in accordance with the invention, the transit time of the mailpiece is advantageously shorter than that using the traditional checkmailing method. It will be appreciated that the transit time of the mailpiece can be completely eliminated by presenting, in person, indicium700 at any designated location for an immediate bill payment. In thatcase, the cost of delivery (i.e., the $0.32 postage) is obviated, andthus postage 709 should show zero.

It is noteworthy that the functionalities of the above payment handlingequipment should be readily incorporated in such systems capable ofprocessing mail pieces having postage indicia of FIG. 6. Theincorporation simply requires the mail processing system to be capableof funds transfer through an EFT network and communicating with acentral computer, and enhancement of software in the system to realizethe above-described transactional functions.

For the ensuing discussion, without loss of generality, we reasonablyassume that each mail processing system incorporates the paymenthandling functionalities in question. In that case, the mail piece onwhich indicium 700 is applied need not be addressed to any particularpostal authority location. In fact, it may be applied onto a mail pieceaddressed to anybody, say, a friend. When the mail piece is processed bya mail processing system, it not only causes the mail piece to bedelivered to the friend, but also the specified payment (i.e., $10.00)to be made to the designated payee (i.e., XYZ Co.). For privacy reasons,transactional data 708 in that case need not be shown. In addition, foran immediate bill payment, the payer can present, in person, indicium700 (less the $0.32 postage) to any post office having a mail processingsystem, which is virtually every post office.

In accordance with another aspect of the invention, indicium 700 (lessthe $0.32 postage) can be used as cash. In that case, the payee shown intransaction data 708 is “cash” (instead of “XYZ Co.”), and the data bitin aforementioned field 801 d is assigned the second value (i.e., “0” inthis instance) to indicate cash payment. In addition, since any bearerof such an indicium is able to cash the indicium for the specifiedamount at a post office, the indicium is preferably printed on specialpaper or medium against fraudulent duplication thereof using, say, aphoto copier. In any event, for fear that the cash-indicium isaccidentally lost, stolen or duplicated, a PIN can be assigned inaforementioned field 801 e. In fact, when a mail processing systemrecognizes a “0” value in field 801 d, it automatically checks for thePIN in field 801 e. If the latter is a default “NULL” field, indicium700 is regarded as cash. If the field has a value other than “NULL,”indicium 700 is regarded as a “traveler's check,” which requires PINverification before it can be cashed. In that case, the legitimatebearer of indicium 700 would have been provided by the originator of theindicium with the correct PIN.

It should be pointed out that when a PIN is used in indicium 700, it ispreferably encrypted for fear that an unauthorized bearer of theindicium would otherwise be able to read the PIN from portion 710 usinga bar-code scanner. For that matter, all other transactional data and/orpostal data in bar-code portion 710 may also be encrypted.

In accordance with yet another aspect of the invention, when indicium700 (less the $0.32 postage) indicating a specified payee (e.g., XYZCo.) is delivered to the payee, without going through any mailprocessing system, the payee can redeem the indicium at any post officeas if it were a money order, which is payable only to the specifiedpayee. Depending on the value of the data bit in field 801 d, the payeereceives cash for the indicium if the data bit has the second value, andotherwise if the data bit has the first value, the payee is entitled toa funds transfer in the corresponding amount to the payee's bankaccount.

In particular, by specifying the payee to be a courier such as FedEx,indicium 700 (less the $0.32 postage) can be used as payment for thecourier service. In that case, indicium 700 can accompany,or be attachedto the package to be delivered by the courier. Using such an indicium,or a copy thereof (in the event that the indicium is permanentlyattached to the package), the courier can receive the actual paymentfrom the postal authority as if it were a money order as describedbefore. As such, we have invented a universal postage indicium (i.e.,indicium 700) good for payment not only to the postal authority but anyother courier for its service.

Generation of indicium 700 is accomplished by entering, on mailprocessor 150, transactional data for data fields 801 a through 801 g inaddition to the required postal data. The actual transactional dataentry may be menu driven and achieved using the key pad of processor 150or the keyboard of computer 103. After receiving the transactional dataand the postal data, processor 150 forwards them to cryptographicprocessor 205 in card 180 for processing. Processor 205 in this instanceis programmed to deduct the transaction amount (derived from thetransactional data) plus the postage amount (derived from the postaldata) from the available postage funds in the descending register, andaccordingly adds same to the dispensed funds in the ascending register.Based on the transactional data and postal data, processor 205 thencreates postage indicium 700. Processor 205 thereafter transmits imagedata representative of the indicium to mail processor 150 where it isformatted for printing on printer 190.

A second technique for reducing the mail transit time in the traditionalcheck mailing method will now be described. In accordance with thissecond technique, the contents of the payer's mail piece, including aremittance in some specified amount, are indicated with certainencrypted information within the postage indicium on the mail piece. Inthe alternative, the contents are indicated by other markings printed onthe mail piece, or onto a selected area of a sheet of paper inside themail piece such that the markings are exposed through an appropriatewindow in the envelope. The encrypted information includes such detailas is required by the payee to establish confidence in the payer'sassertion that remittance is being made. For example, the encryptedinformation may include the payer's digital signature (guaranteeing thecontents subject to a legal penalty), the payer's account number withthe payee, the payer's bank account number, the amount remitted, etc. Inone embodiment, an indication could be included on the mail piece thataffirms that the content is included in the mail piece. Referring toFIG. 5B, information regarding the content of the mailpiece is inputtedor received 531. Information related to the content of the mailpiececould then be included 532 in the postage indicia. The indication couldcause a processor of the mail piece to inform a third party of theinformation while the mail piece is being sent.

When the mail piece is received and processed by the postal authority'sor other courier's automation equipment, the aforementioned encryptedinformation is electronically read. The portion of the informationpertaining to the payer's remittance as required by the payee iselectronically captured and, in a timely fashion, communicated to thepayee. At the same time, the payee is informed of the approximatedelivery time of the mail piece containing the payer's remittance. Thedelivery time is estimated based on the current status of the mail piece(e.g., the time and date, location within an automated sortation andhandling system, etc.) and its ultimate destination (the payee's postalor routing code, the carrier sortation route, etc.).

It should be noted that during the processing of the mail piece, thepostal authority or courier may re-route it to a financial institutionfor immediate deposit of the remittance. Such re-routing instructions,if any, are provided by the payee. Once receipt of the payment isacknowledged by the financial institution, the final accountreconciliation between the institution and the payee is confirmed.

Further, the encrypted information on the mail piece may also be used toconvey data other than monetary data, e.g., partial payment, redirectionof payment, and order information.

The foregoing merely illustrates the principles of the invention. Itwill thus be appreciated that those skilled in the art will be able todevise numerous other systems which embody the principles of theinvention and are thus within its spirit and scope.

For example, it will be appreciated that postage payment system 100 willbe expanded to include a paper handling system, feeder, transport, zipcode scanner, and/or an envelope printers where appropriate.

In addition, in the disclosed embodiment, the mailing applicationprogram of FIG. 4 is used to generate a postage indicium on the mailcontents. However, such a program is equally applicable to generating apostage indicium on the cover of a mail piece, an envelope, a postcard,etc.

Moreover, in the disclosed embodiment, the mailing application programis installed on computer 103 only. However, such a program may reside inan interactive network, instead, and intercepts a specified wordprocessor output to add the requisite control sequence to the printstream.

Further, mail processor 150 may require coded access to postagedispensing. The access may be based on person-by-person,department-by-department, or other controlled access deemed appropriate.

Mail processor 150 may also be interfaced with a management informationsystem (MIS) capable of invoice processing and printing applications. Inthat instance, mail processor 150 will be used to enhance the MISfunctions by applying proof of postage directly onto invoicesconcurrently with the preparation of the invoices and any inserts. TheMIS would provide to the mail processor such information as the numberof pages, inserts, mail class, etc. concerning each invoice, along withweight-related data regarding the envelope and content materials. Themail processor would then calculate the required postage and properlyapply the proof of postage to the invoice.

In addition, it will be appreciated that mail processor 150 willincorporate a well-know address cleansing capability for matching,verifying, and correcting the sender and recipient addresses and theirzip codes.

Moreover, mail processor 150 may allow the user to obtain shipping ratesof different couriers (e.g., UPS, FedEx and USPS) and to compare ratesamong such couriers. In one embodiment, this could occur through aninterface other than the interface that is used to receive informationconcerning the mail piece and information concerning a value of thepostage. It may also be capable of determining the best method ofshipment based upon user parameters such as cost and speed.

Further, mail processor 150 may be capable of communicating with a mainframe or host computer to receive mail processing directions (e.g., setup parameters) and printer applications.

Still further, mail processor 150 may be capable of printing bar-codeddigital signatures on the material to be facsimile-transmitted. It canalso scan or digitally read facsimile-transmitted material at itsdestination using public/private key cryptography to authenticate thetransmission for the recipient. Further, it can transmit data with anappropriate digital signature using an encryption algorithm provided ina control/smart/PCMCIA card such as IC card 180.

It will be appreciated that mail processor 150 can communicate with athird party certification authority 120 (e.g., a digital notary) througha communication network 110 (e.g., the Internet) to provide verificationto the sender that the recipient has (1) received the transmitted data,(2) accessed the transmitted data, and/or (3) converted the transmitteddata to plain text.

In addition, it will be appreciated that card 180 can be used as ageneral purpose prepaid card for purchasing products and services. Usingits cryptographic engine, card 180 is also capable of storing anddispensing digital money in the manner typified by a digital wallet orcash card.

Moreover, in the disclosed embodiment, a TMS process is used toreplenish the postage in card 180, which requires a pre-funded escrowaccount with the postal authority. However, it will be appreciated thata user will be able to establish a different type of account with thepostal authority (or any other courier or trusted third party) forpurchasing the postage, such as an account based on line of creditpre-approved by the postal authority, a charge card, a debit card, acredit card, etc. Each postage purchase is accompanied by crediting thecorresponding purchase amount to the postal authority.

Further, it will be appreciated that the user may purchase the postageon-line (e.g., through a modem or data set connection) on a transactionby transaction basis using a credit card, debit card, ATM card, etc. Assoon as a postage indicium is provided as a result of the on-linepurchase, the card account is debited with the purchase amount and apostal authority account is credited accordingly.

Moreover, it will be appreciated that portions 605 and 610 of postageindicium of FIG. 6 and portions 705 and 710 of indicium 700 may beimparted to a label/tape for affixing to a mail piece, enclosure or toan appropriate location on the contents of said mail piece.

Finally, although postage payment system 100, as disclosed, is embodiedin the form of various discrete functional blocks, the system couldequally well be embodied in an arrangement in which the functions of anyone or more of those blocks or indeed, all of the functions thereof, arerealized, for example, by one or more appropriately programmedprocessors or devices. In particular, in the disclosed embodiment, mailprocessor 150 and computer 103 are shown to be two separate elements.However, it will be appreciated that all or part of the functions ofprocessor 150 will be realized in computer 103. It will also beappreciated that all or part of the functions of computer 103 arerealized in processor 150 with a dedicated/secure printer, therebyrealizing a self-contained postage metering system.

1. An apparatus for dispensing postage for a mail piece comprising: amemory for storing first data representative of a value of postagefunds; an interface, operably connected to the memory, for receivingselected information concerning a mail piece content and informationconcerning a value of the postage, the value of the postage funds beinga function of the value of the postage; and a processor operablyconnected to the memory and the interface for receiving selectedinformation, for encrypting at least the selected information togenerate second data, the first data and the second data being providedto a mail processor for creation of an indicium indicative of payment ofthe postage, the mail piece content, an additional payment amount, andpayee to receive the additional payment; wherein the mail processorgenerates control instructions to a printer for printing the indicium ina selected location on the mail piece content such that the indicium isexposed through a window, the window being on a cover for enclosing themail piece content; and wherein the additional payment amount isdeposited in an account belonging to the payee when the mail piece isprocessed by a mail piece carrier.
 2. The apparatus of claim 1 whereinsaid second data includes a digital signature.
 3. The apparatus of claim1 wherein said memory further includes an encryption algorithm, saidsecond data being encrypted in accordance with said encryptionalgorithm.
 4. The apparatus of claim 3 wherein said encryption algorithmis an Rivest Shamir Adelman (RSA) algorithm.
 5. The apparatus of claim 3wherein said encryption algorithm is a digital signature algorithm(DSA).
 6. The apparatus of claim 1 wherein said memory comprises anascending register for tracking dispensed postage, the memory includesinformation for determining past postage dispensation.
 7. The apparatusof claim 1 wherein the value of the postage funds is changed in responseto a request to purchase postage.
 8. A method for use in an IC modulefor dispensing postage for a mail piece comprising the steps of: storingfirst data representative of a value of postage funds; receivingselected information concerning a mail piece content and informationconcerning a value of the postage, the value of the postage funds beinga function of the value of the postage; receiving additional paymentdata including a payment amount and an identification of a payee;encrypting at least the selected information to generate second data;and providing the first data, the second data, and the additionalpayment data to a mail processor for creation of a postage indicium;wherein the mail processor generates control instructions to a printerfor printing the indicium in a selected location on the mail contentsuch that the indicium is exposed through a window, the window being ona cover for enclosing the mail content; and wherein the additionalpayment amount is deposited in an account belonging to the payee whenthe mail piece is processed by a mail piece carrier.
 9. The method ofclaim 8 wherein said second data includes a digital signature.
 10. Themethod of claim 8 wherein said selected information is encrypted inaccordance with an encryption algorithm.
 11. The method of claim 10wherein said encryption algorithm is an Rivest Shamir Adelman (RSA)algorithm.
 12. The method of claim 10 wherein said encryption algorithmis a digital signature algorithm (DSA).
 13. The method of claim 8wherein the value of the postage funds is changed in response to arequest to purchase postage.
 14. A method for use in a system fordispensing postage for a mail piece, said system including an IC module,comprising the steps of: storing first data representative of a value ofpostage funds in the IC module; receiving by the IC module selectedinformation concerning the mail piece and information concerning a valueof the postage, the value of the postage funds being a function of thevalue of the postage; receiving by the IC module additional paymentinformation including an additional payment amount and an identificationof a payee; encrypting by the IC module at least the selectedinformation to generate second data; generating a postage indicium basedon the second data and the additional payment information; anddepositing the additional payment amount in an account belonging to thepayee when the mail piece is processed by a mail piece carrier.
 15. Themethod of claim 14 further comprising the step of controlling access tosaid system.
 16. The method of claim 14 wherein the selected informationconcerning the mail piece includes address information, the methodfurther comprising the step of checking address information on the mailpiece.
 17. The method of claim 14 wherein the communicating stepincludes the step of communicating with a certification authority otherthan the selected recipient to verify receipt by the selected recipientof the information.
 18. The method of claim 14 wherein the communicatingstep includes the step of communicating with a certification authorityother than the selected recipient to verify access by the selectedrecipient to the information.
 19. The method of claim 14 wherein saidsecond data includes a digital signature.